Only 37 Telangana companies have received funding through the Fund of Funds for Businesses (FFS) initiative, according to latest Lok Sabha data. These startups have collectively raised about ₹600 crore through Alternative Investment Funds (AIFs). That’s a striking contrast to top-performing states like Karnataka, where 396 startups got ₹7,348 crore, Maharashtra with ₹5,606 crore, and Delhi at ₹3,689 crore.
Why the Shortfall?
Weak Visibility & Investor Presence
Industry experts say Telangana startups are often overshadowed by companies in Bengaluru or Noida. Without strong branding and consistent digital presence, many promising ventures remain unnoticed by investors and AIFs.
Questionable Quality & Relocation Trends
Ramesh Loganathan of the Centre for Innovation & Entrepreneurship explains that several startups from Telangana may not meet benchmark criteria or choose to relocate to bigger hubs for better access and visibility.
A Slow, Complex Application Journey
According to Saketha Pingali, the creator of Smart Pharma, the FFS application procedure is cumbersome and inefficient. “Unless the funding is substantial, the challenges and unpredictability frequently overshadow the benefits,” She said.
How Does Telangana Compare?
Telangana’s performance under Startup India’s FFS (Fund of Funds) initiative is compared to larger ecosystems as follows:
- Karnataka: ₹7,348 crore for 396 startups.
- Maharashtra: ₹5,606 crore (many business investments)
- Delhi: 3,689 crore rupees.
- Telangana: 600 crore is raised by 37 companies.
Telangana lags behind comparable states and the national average, although 1,282 enterprises nationwide have received ₹23,679 crore from the FFS plan.
What Telangana Needs to Bridge the Gap
Boost Ecosystem Infrastructure
Telangana could take a page from Karnataka’s playbook by establishing state-level FoFs, cluster-based seed funds, or incubators beyond Hyderabad as seen in Karnataka’s successful model.
Amplify Startup Visibility
Encouraging startups to maintain a strong online footprint, participate in national accelerators, and make regular investor outreach could improve awareness and attract funding.
Improve Quality & Retention
Support programs, like mentorship, skills-building, and investor matchmaking, can raise startup quality and prevent relocation to other hubs for perceived opportunities.
In Summary
Telangana’s ₹600 crore funding for just 37 startups via FFS lags far behind thriving ecosystems in Karnataka, Maharashtra, and Delhi. It’s not just about numbers, visibility, ecosystem maturity, and infrastructural support all matter. If Telangana can invest in stronger networks, better visibility tools, and state-centric funding models, it stands a chance to level up.
Also Read: How Bharat Jain Built a ₹7.5 Crore Fortune in Mumbai?
